Lg project new

CONSUMER AWARNSESS 1
TRAINING REPORT
ON
CONSUMER AWARNESS AT LG ELECTRONICS.
A project report submitted in partial fulfillment of the requirements
For the award of the degree
POST GRADUATE DIPLOMA IN MANAGEMENT
TO
M. S. RAMAIAH MANAGEMENT INSTITUTE
BY
“RAJAT BARANWAL”
REG. NO. 122135
UNDER THE GUIDANCE OF
“Prof. MEGHNA VERMA”
M.S. RAMAIAH MANAGEMENT INSTITUE
NEW BEL ROAD, BANGALORE – 560054

DECLARATION
I hereby declare that this project report conducted at “CONSUMER
AWARNESS” at the “LG ELECTRONICS.”
Under the guidance of “Prof. Meghna Verma ”.
Submitted in partially fulfillments of the requirements for the Degree of POST
GRADUATE DIPLOMA IN MANAGEMENT
TO
In my original work and the same has not been submitted for the award of any
other Degree/Diploma/Fellowship or other similar titles or prizes.
Place:Bangalore Rajat Baranwal
Date: Reg. No. 122135

CERTIFICATE
This is to certify that the Project Report at “LG ELETRONICS” Submitted in
partial fulfillment of the requirement for the award of degree of
POST GRADUATE DIPLOMA IN MANAGEMENT
To
Is a record of bonafide Training carried out by “RAJAT BARANWAL” under my
supervision and guidance and that no part of this report has been submitted for the
award of any other Degree/Diploma/Fellowship or similar other titles or prizes.
FACULTY GUDIE:
Signature:
Name: Prof. Meghna Verma
Qualification: M.B.A. , M.Sc.

ACKNOWLEDGEMENET
I extend my special gratitude to our beloved Dean “ Dr. H.Muralidharan”
Academic Head “Dr. V. NARAYAN” and Program Head “Dr. PADMAJA
VANKA” for inspiring me to take up this is project.
I wish to acknowledge my sincere gratitude and indebtedness to my project guide
“Prof. Meghna Verma” of M.S. RAMAIAH MANAGEMENT INSTITUTE,
Bangalore for her valuable guidance and constructive suggestions in the
preparation of project report.
Rajat Baranwal

S. No. Particular Page No.
1 Execute Summary 8-9
2 Chapter -1 Industry Analysis
2.1 About Electronics 11
2.2 About Electronics Industry 12
2.3 History of Electronics Industry 13
2.4 The Indian Electronics Industry 14-16
3 Chapter – 2 Company Analysis
3.1 History Of Company 19
3.2 The Global Operation 20-22
3.3 Objective, Mission, Vision 23
3.4 Brand Identity 24
3.5 Brand Platform 25-28
3.6 Partnership 29
3.7 The Internal Culture of LG 32
3.8 Quality Innovation 34
3.9 Marketing Strategy 35
3.1 Distribution , Price Strategy 36
3.11 Promotion 37
3.12 Product Range 39-53
3.13 LG Ethics 54-59
3.14 Competitor 60
3.15 Swot Analysis 31-32

4 Chapter - 3 Discussion on Training
4.1 Objective of my Job 65
4.2 Role & Responsibility 66
4.3 Description of Live Experience 67
5 Chapter -4 Analysis of Task
5.1 Statement of the Problem, 69
5.2 Objective 69
5.3 Scope 69
5.4 Methodology 70-71
5.5 Data Collection Method 72
5.6 Sampling 73
5.7 Sample Size 73
5.8 Sample Type 73
5.9 Limitation of Study 74
5.1 Data Analysis 75-82
5.11 Consumer Survey Finding 83
5.12 Recommendation and Suggestion 84
5.13 Limitation 85
Bibliography 86
Annexure 87-89

EXCUTIVE SUMMARY
Indian Consumer durables market used to be dominated by few domestic players
like Godrej, Voltas Allwyn and Kelvinater. But post liberalization much foreign
company have entered into Indian market dethroning the Indian player and
dominating Indian market the major categories in the market CTV,
REFRIGRATOR, AIR CONDTIONERS AND WASHING MACHINE
India being the second largest growing economy with huge consumer class
has resulted in consumer durables as the fastest growing industries in India LG,
SAMSUNG the two Korean companies has been maintaining the lead in the
industries with LG being leader in almost all the categories.
The rural market is growing faster than the urban market, although the penetration
level is much lower .The CTV segment is expected to the largest contributing
segment to the overall growth the industry. The rising income levels double-
income families and consumer awareness are the main growth drivers of the
industries.
Consumer durables major LG Electronics India Pvt. Ltd (LGEIL) will invest
nearly Rs 500 Cr in India this year in research and development, brand-building
and other marketing initiatives.
The company, having a turnover of Rs 9,500 Cr and market share of 26 per cent, is
investing Rs 360 Cr on brand-building and other marketing initiatives and around
Rs 140 Cr on research and development, besides launching new platforms in
information technology and related areas.

LG’s innovative ‘211 campaign’ to provide quality after-sales service, will also be
expanded from the existing 22 to 40 cities by next month,
The campaign, for which IT infrastructure has been set up, includes the company’s
response to customer complaint within two hours. The fixing time for complaints
varies from one hour to a maximum of 24 hours.

INDUSTRY ANALYSIS

About Electronics
Electronics deals with electrical circuits that involve active electrical
components such as vacuum tubes, transistors, diodes and integrated circuits, and
associated passive interconnection technologies. The nonlinear behavior of active
components and their ability to control electron flows makes amplification of weak
signals possible and electronics is widely used in information
processing, telecommunications, and signal processing.
The ability of electronic devices to act as switches makes digital information
processing possible. Interconnection technologies such as circuit boards,
electronics packaging technology, and other varied forms of communication
infrastructure complete circuit functionality and transform the mixed components
into a regular working system.
Electronics is distinct from electrical and electro-mechanical science and
technology, which deals with the generation, distribution, switching, storage, and
conversion of electrical energy to and from other energy forms
using wires, motors, generators, batteries, switches, relays, transformers, resistors,
and other passive components.
This distinction started around 1906 with the invention by Lee De Forest of
the triode, which made electrical amplification of weak radio signals and audio
signals possible with a non-mechanical device. Until 1950 this field was called
"radio technology" because its principal application was the design and theory of
radio transmitters, receivers, and vacuum tubes.
Today, most electronic devices use semiconductor components to perform electron
control. The study of semiconductor devices and related technology is considered a
branch of solid state physics, whereas the design and construction of electronic
circuits to solve practical problems come under electronics engineering. This
article focuses on engineering aspects of electronics.

ABOUT ELECTRONICS INDUSTRY
The electronics industry, especially meaning consumer electronics emerged in the
20th century and has now become a global industry worth billions of dollars.
Contemporary society uses all manner of electronic devices built in automated or
semi-automated factories operated by the industry.
The size of the industry and the use of toxic materials, as well as the difficulty of
recycling has led to a series of problems with electronic waste. International
regulation and environmental legislation has been developed in an attempt to
address the issues.
The electronics industry scope cannot be restricted to mass-market products that
are produced in millions and even billions of pieces a year (mobile phones, TVs,
PCs, etc.). Mass-market products ‘only’ represented 53% of the electronics
industry in 2008.
The electronics scope also encompasses embedded electronics in transport (cars,
planes, trains, etc.), in defence equipment, in IT infrastructures as well as
electronics used in manufacturing process orprofessional services in order to boost
productivity. In other words, professional electronic equipment.
Contrary to mass-market products, professional electronic equipment is
characterized by lower quantities from single units to hundreds of thousands units.
They do not address individual clients but private companies or organizations such
as governments.
Obviously in order to compete in these respective domains, players need to comply
with rather different industrial paradigms. The structure of the electronics
equipment industry is reflecting this dichotomy.

HISTORY Of ELECTRONIC INDUSTRY
The generation of electricity began in the 19th century and this led to the
development of all manner of inventions. Gramophone’s were an early invention
and this was followed by radio transmitters and receivers and televisions. The
first digital computers were built in the 1940s with a slow development in
technology and total sales. In the 1990s the personal 0computer became popular. A
large part of the electronics industry is now involved with digital technology.
The industry now employs large numbers of electronics engineers and electronics
technicians to design, develop, test, manufacture, install, and repair electrical and
electronic equipment such as communication equipment, medical monitoring
devices, navigational equipment, and computers.
Consumer electronics is that which is intended for everyday use, most often
in entertainment, communications and office productivity. Radio broadcasting in
the early 20th century brought the first major consumer product, the broadcast
receiver. Later products include personal computers, telephones, MP3
players, audio equipment, televisions, calculators, GPS automotive electronics,
digital cameras and players and recorders using video media such
as DVDs, VCRs or camcorders. Increasingly these products have become based on
digital technologies, and have largely merged with the computer industry in what is
increasingly referred to as the consumerization of information technology.
The CEA (Consumer Electronics Association) estimated the value of 2007
consumer electronics sales at US$150 billion.

THE INDIAN ELECTRONICS INDUSTRY
India has been home to all the major EMS companies including Flextronics,
Foxconn, Elcoteq, Jabil Circuits, and Sanmina, etc. There are also numerous home-
grown EMS companies catering to multiple but niche application segments. Some
pertinent growth drivers for India’s EMS industry include
 Strong and growing domestic demand for mobile phones, medical,
consumer, aerospace and automotive electronics.
 Increasing demand for telecom infrastructure equipment
 Highly talented workforce, especially for design and engineering services
with good communication skills.
 Inflation and rising costs of doing business in China.
 Presence of global EMS majors and their plans for increased investments in
India.
 More outsourcing of manufacturing by both Indian and global OEMs that
are increasingly focusing on R&D and other core competencies.
Key factors responsible for the evolution and growth of the EMS industry in India
are:
1. Low Cost Attraction – Globally India has and is gaining recognition as one
of the best low cost destinations for manufacturing. In recent years, with costs
rising in neighboring China, India has been able to further its recognition on the
cost front. The hourly compensation for Indian workers employed in an electronics
manufacturing factory stands below $0.5 even now. In comparison, the hourly
compensation for a US worker is between $20 and $22. Even Mexico, one of the
early proponents of the EMS industry, pales in comparison to India at $3 per hour.
2. Special Economic Zones (SEZ) – India was the first Asian economy to set
up an export processing zone (called SEZ in later years) way back in 1965. The
10th and 11th Five Year Plans are incentivizing the creation of more of electronics
hardware SEZs in the country.

3. Local Consumption Volumes – Being the world’s second most populated
country and one with a growing economy, India has been and continues to remain
one of the largest consumers of electronics products. The high domestic
consumption volumes make it an attractive destination for electronics
manufacturing services. Over 60 percent of India’s population is in the age band of
15-40 years; this along with the rising levels of disposable income is creating a
huge consumption market in the country.
Electronics Consumption
The past decade has been remarkable for the Indian electronics industry from a
consumption perspective: 18 million mobile phones in 2003 to 172 million units in
2010; shipment of 3 million PCs in 2003 to over 8.2 million in 2010; from a non-
existent market in 2003 to a rapidly growing LCD TV market that witnessed sales
of 3.5 million units in 2010. The tremendous growth in all segments of electronics
has given the industry a key position on the global map. The Indian electronics
industry has been growing at a CAGR of over 25 percent in the past 5 years and
the major reasons that can be attributed to this growth are:
 GDP growth rates in excess of 8 and 9 percent.
 Revival of the global economy following the 2000-01 dotcom bubble burst.
 A rapidly expanding middle class with increasing disposable income.
 Continual decline in prices of most the electronics goods(a camera mobile
that cost over Rs.15,000 five years ago is available for < Rs. 5,000 today).
 Presence, expansion and/or entry of all major Electronic OEMs and
suppliers into the country creating greater visibility for brands and products.
 Steady increase in exports.
 Exemption of custom duty on 217 products that come under the ITA-1
items.

The Indian electronics industry was estimated to be $65.1 billion in 2010 growing
at over 27 percent from 2009. Chart 5.1.2.a below presents the contribution of
different segments to the Indian electronics industry in 2010.

COMPANY ANALYSIS

TODAY Consumer durables sector is characterized by the emergence of MNCs,
exchange offers, discounts, and intense competition. The market share of MNCs in
consumer durables sector is 65%. MNC's major target is the growing middle class
of India. MNCs offer superior technology to the
LG, SAMSUNG the two Korean companies has been maintaining the lead in
the industries with LG being leader in almost all the categories.
The company, having a turnover of Rs 9,500 crore and market share of 26 per cent,
is investing Rs 360 crore on brand-building and other marketing initiatives and
around Rs 140 crore on research and development, besides launching new
platforms in information technology and related areas.
LG Electronics is one of the leading companies in the field of electronics with a
global presence in many countries. .

History of company
The company was originally established in 1958 as Gold Star, producing radios,
TVs, refrigerators, washing machines, and air conditioners.
The LG Group was a merger of two Korean companies, Lucky and Gold Star, from
which the abbreviation of LG was derived. The current "Life's good" slogan is a
backronym. Before the corporate Name change to LG, household products were
sold under the Brand name of Lucky, while electronic products were sold under the
brand name of Gold Star. The Gold Star brand is still perceived as a discount
brand.
In 1995, Gold Star was renamed LG Electronics, and acquired Zenith Electronics
of the United States.

Global Operation
LG Electronics is playing an active role in the world market with its assertive
global business policy. As a result, LG Electronics controls 110 local subsidiaries
in the world with around 82,000 executive and employees.
LG Group
1. LG.Philips LCD
2. LG Chemical
3. LG Telecom
4. LG Powercom
5. LG Twins
6. LG Dacom
Business areas andmain products
Mobile communications
(a)CDMA Handsets,
(b)GSM Handsets,
(c)3G Handsets,
(d)Cellular Phones

Digital appliance
a) Air Conditioners,
b) Refrigerators,
c) Microwave Ovens,
d) Washing Machines,
e) Vacuum Cleaners,
f) Home Net,
g) Compressors for Air Conditioners and Refrigerators
Digital display
a) Plasma TVs,
b) LCD TVs,
c) Micro Display Panel TVs,
d) Monitors,
e) PDP Modules,
f) OLED Panels,
g) USB Memory,
h) Flat Panel Computer Monitors

Digital media
a) Home Theater Systems,
b) DVD Recordes,
c) Super Multi DVD Rewriters,
d) CD±RW,
e) Notebook PCs,
f) Desktop PCs,
g) PDAs,
h) PDA Phones,
i) MP3 Players,
j) New Karaoke Systems,
k) Car Infotainment

Company Vision:-
LG Electronics continues to pursue its 21st century vision of becoming a
worldwide leader in digital—ensuring customer satisfaction through innovative
products and superior service while aiming to rank among the world’s top three
electronics, information, and telecommunications firms by 2010.
On our way, we hold tight to a philosophy of “Great Company, Great People,”
underscoring our belief that only great people can create a great company.
LG strives for greatness in what we’ve identified as our three core capabilities:
Product Leadership, Market Leadership, and People Leadership—each strength a
key part of realizing our growth strategies for “fast innovation” and “fast growth”.
Company Mission:-
LGE's mission statement explains that its goal is to become a top innovative
electronics company in the world. It takes pride in its company and employees and
believes that this is what will make it into one of the most innovative companies of
the 21st century.
Company Objective:-
The objectives of the Company are as follows:
1. To manufacture and sell electronic machinery and appliances;
2. To manufacture and sell communications machinery and appliances;
3. To manufacture and sell electric machinery and appliances;
4. To manufacture and sell other machinery and appliances;
5. To manufacture, process and sell plastics;
6. To manufacture, sell, lease and franchise multimedia hardware and software;
7. To manufacture and sell wires and cables for electric powers and
communications;

BRAND IDENTITY
LG is the brand that is Delightfully Smart. "Life's Good" slogan, and futuristic
logo are a great representation of what we stand for.
Global, Tomorrow, Energy, Humanity and Technology are the pillars that this
corporation is founded on; with the capital letters L and G positioned inside a
circle to center our ideals above all else, humanity. The symbol mark stands for
our resolve to establish a lasting relationship with, and to achieve the highest
satisfaction for our customers.
The letters "L" and "G" in a circle symbolize the world, future, youth, humanity,
and technology. Our philosophy is based on Humanity. Also, it represents LG's
efforts to keep close relationships with our customers around the world. The
symbol mark consists of two elements: the LG logo in LG Grey and the stylized
image of a human face in the unique LG Red color. Red, the main color,
represents our friendliness, and also gives a strong impression of LG's
commitment to deliver the best. Therefore, the shape or the color of this symbol
mark must never be changed.
Our logo is the fundamental visual expression used to identify LG. It expresses
the quality and sophistication that is the hallmark of our products. It is simple,
modern and distinctive. Consistent and proper usage of the logo is absolutely
essential. The logo is symbolic of our steadfast reputation for excellence;
therefore, any variation of the logo diminishes the visual identity of LG
Electronics and its products.
We have two versions of our logo: Corporate Logo and 3D Logo.
The updated 3D Logo retains the heritage and equity of the Corporate Logo, while
aligning with our new positioning. It was redrawn to strengthen the visual impact
of our symbol mark and help communicate our attributes.

The Brand Platform:-
The LG brand is composed of four basic elements –
1. Value
2. Promise
3. Benefits
4. Personality
The Brands core Value that never changes.
a. Trust,
b. Innovation,
c. People
d. Passion
The benefits that are consistently delivered to the customer includes
a. Reliable products
b. Simple design
c. Ease of use
d. Extraordinary Experience
Personality describes the human characteristic that are expressed to the customer
through
a. Trustworthy, Considerate
b. Practical, Friendly

CORPORATE LOGO
3D LOGO
SLOGAN
"Life's Good"

"Life's Good" represents LG's determination to provide delightfully
smart products that will make your life good.
The LG Electronics Life's Good signature consists of the LG logo, seal,
and the slogan, "Life's Good" set in Charlotte sans typeface curved
around the LG symbol. The curving of the slogan reinforces LG's
personality and uniqueness. The consistent usage of this signature clearly
establishes the unique identity of the company and unifies every division
and product from LG Electronics across the globe.

THE SYMBOL
The symbol of LG is the face of future. The letter “L” and “G” in a circle
symbolizes world, future, youth, humanity & technology.LG philosophy is based
on humanity. It also represents LG’s efforts to keep close relationship with our
customers around the world.
The symbol consists of two elements.
1. The logo in LG gray
2. The stylized image of human face in the unique LG red color.
Red color represents our friendliness and gives a strong impression of LG’s
commitment to deliver the best.
The circle symbolizes The Globe. The stylized image of a smiling face in the
symbol conveys “Friendliness and Approachability”. The one eye on the symbol
represents “Goal-oriented, Focused & Confident”.
The slogan of LG is “Life’s Good”. It expresses “Brand’s Value, Promises,
Benefits, Personality.

THE PARTNERSHIP
LG Electronics chooses to promote harmony and build constructively on a labor-
management relationship rather than an employee-employer relationship. This
illustrates that management and workers are not in a vertical relationship, but in a
horizontal one.
This culture is necessary for LG Electronics as it strives to become one of the
world's top companies. Such a relationship is transformed into a value-creation
relationship whereby both parties endeavor to address mutual problems and create
new values together.
STRATEGIC ALLIANCE
LG Electronics is making technical advances and identifying business
opportunities through various associative relationships with some of the
world's leading companies.
LG Electronics is striving to become number one in the world by mingling
in various business and technological fields and making strategic alliances with
world famous companies. "Strategic association between corporations," in which
companies with different infrastructures cooperate in the fast-developing 21st
century business field, is of key significance in terms of strengthening the existing
industry and creating a new one.

LG Electronics will do its best to create new products and services with an open
mind, while developing new technologies and business fields through various
associations with some of the world's most successful companies.
1. 3M
2. SUN
3. YAHOO
4. PHILLIPS
5. TOYOTA
6. MICROSOFT
7. HP
8. GOOGLE
9. GE
10.INTEL
11.NORTEL
12.HITACHI
13.PRADA
14.RENESAS
15.TOSHIBA
16.BESTBUY

And the number follows many more…………………………..
In Feb. 2007 LG Electronics and Yahoo formed a strategic alliance. Yahoo mobile
services will be available from LG mobile. This service is targeting 10 million LG
mobile phones in over 70 countries.
In Mar. 2007 LG Electronics and Google formed a strategic alliance.
Both companies will work together to release, market, and offer LG mobile phones
with Google services (search engine, map, email, and blogs.)

The Internal Culture of LG:
LG practices four cultures
1. Learning Culture
2. Boundary less Environment
3. A Carrier
4. Growth
According to LG, the Learning Culture continuously helps the employee to learn
more and more to develop the habit of continuous learning.
Boundary less Environment means that there is no difference between the levels
of employees. There is transparency between the work and mutual understanding
between all the employees.
A carrier is highly growing in LG and one who is the employee can develop their
carrier largely. A new comer will feel fully comfortable in the company and for a
new comer the company is very helpful in the overall growth of personality.
Growth in LG is very high for those who are in the company and for those who
want to join in LG. The company is growing with fast innovation and the BLUE
Ocean strategy is one of the examples of growth.

Product Leadership
We are focusing on six development areas to become the product leader.
1. New Machine
2. Reliability
3. Conventional Installation
4. Environment Friendly Product
5. Low Noise & Vibration
6. Energy Saving

QUALITY INNOVATION
The policy of quality assurance is to provide customers with utmost satisfaction by
supplying zero defects.
LG proceeds in a hierarchal manner. It is named as “LG WAY”.
From top to bottom:
No.1 LG – is the VISION
“Jeong-DO” Management is LG’s unique application to ethics. LG will succeed
through fair management practices and constantly developing our business skill.
A) Honest with our customer
b) Providing great values to customer through constant innovation & and
development.
c) Equal opportunities
d) Equal Treatment
Management Principle - Creating value for customer

MARKETING STRATEGY
Here is the detail of marketing mix of LG including its product, distribution,
pricing and promotional strategy.
LG PRODUCT LINE:- Since its initial years in India. LG has focused on bringing
out new models regularly in its product range. In its 1st year of operation in India,
LG launched 70 models across a range of products. In 1997,it introduce its Golden
Eye Technology TV, which had a light sensitive natural algorithm “eye” .
The “eye” respondent to the changes in lighting in the room accordingly and
adjusted color sharpness, brightness, contrasts, tint & balance them automatically.
Thus, LG showed that it cared for customers ‘health through its product.
LG concern for health of customers was its unique selling proposition (USP) in the
Indian Consumer durables market.
Similarly, LG positioned its refrigerators as the ‘preserve nutrition system’
refrigerators. In 1998, the company launched air condition as Health Air ACs….

DISTRIBUTION
In its initial years in India, LG realized that it was important to have a good
distribution network to reach far-flung towns and the semi-urban markets. To
increase brand awareness among consumer, LG sent vans across India covering
5000 km every month. The company focused on building a strong dealer network.
In the late 1990s, when the trend was to give a credit period of 45 to 90 days to
dealers, LG did not offer any such schemes to attract dealers.
It instead asked them to pay in advance for its products. This ensured that the
dealer pushed the brand in the market to keep their own cash from being blocked.
At the retail and trade level, as the volumes grew faster, LG pushed its dealer
towards selling product at lower margins and focusing on quick rotation of stocks.
PRICING STRATEGY
When LG started its operation in 1997, it sold product that were imported. Hence,
its products were priced high and were equivalent to other foreign (Japanese )
products. Industry analysts felt that this strategy was adopted To make local
consumer feel that LG products were by no means inferior to japaness products in
performance or quality .
However , in 1998, LG launched sampoorna its first low priced TV for rural
consumers and fallowed it with CINEPLUS according to kim as the indian
customer wanted the best products at reasonable prices , LG started introducing
quality products in economy range
In the first few years its entry ,LG did not get into price wars . unlike other players
,it did not offer any exchange schemes or discounts .LG officials said that they
believed in a ‘HONEST PRICING POLICY” and its message to customers to read
‘NO SCHEME,NO GIMMICK,GREAT PRODUCTS and HONEST PRICE ‘…..

PROMOTION
LG gave immense importance to its promotion and advertising activities . in 2004,
the company spent nearly RS. 1.3 billion (5% of its revenue ) towards advertising .
analyst commented that LG’s promotion and advertising of its durable segment
were similar to that of an FMCG company . unlike many indian brands which
advertised seasonally (2-3months during festivals i.e. September, October and
November) LG advertised all round the year .

Product Range:

TELEVISION
LG 84" Class Ultra High Definition 3D TV with Smart TV (83.9"
diagonally)

LG 3D TV
LG LEDTV
LG LCD TV

LG SMART TV

REFRIGERATOR
DOUBLE DOOR FREEZ SINGLE DOOR FREEZE

ULTRA LARGE CAPACITY DOOR IN DOOR
FREEZE

WASHING MACHI
ALL IN ONE WASHER
SEPRATE WASHER

AIR CONDITIONAR
WINDOW A.C
SPLIT A.C.

HOME THEATER

MUSIC SYSTEM

LG ETHICS
LG, share and believe in two key corporate principles - "Creating value for
customers" and "Respecting human dignity." Based on these principles and in the
spirit of our Management Charter, we strive to promote self-governing
management
And its accompanying responsibilities. It is our intention to uphold the principle of
free market economy, which embodies the spirit of fair competition. We are
committed to attaining our goal of becoming a global leader, and as such we will
continuously pursue mutual benefits for our stakeholders on the basis of trust and
cooperation. LG is committed to act uprightly and make value judgments in
accordance to the code of ethics.
Responsibilities and Obligations to Customers
We highly regard the opinions of our customers in the belief that they form the
very basics of our business. We seek to secure unconditional trust from our
customers by continuously providing them practical values.
1. Respect for Customers
We value the opinions of our customers and validate their real needs at all times.
Therefore we regard our customers as the primary standard for our decisions and
conducts.
2. Creating Value
We work to create value for our customers for it is through customer satisfaction
that we build the foundation of our prosperity. We continuously create practical
values that fully benefit and satisfy our customers.
3. Providing Value
We are always truthful to our customers, and are bound to keep our promises. We
offer top quality products and services to our customers at reasonable prices and
respond to their requests with speed and accuracy.

Fair Competition
Our global business activities conform to relevant laws and regulations of the host
nations. At the same time, we employ only fair and just means in securing our
competitive advantage in the global market.
1. Pursuit of Free Competition
We uphold the principle of the free market economic system. Therefore we pursue
free competition and earn our customers' trust through top quality products and
services. We compete fairly and capably with our competitors, but do not intrude
upon their interests, or exploit their weaknesses.
2. Compliance with Laws and Regulations
We conduct our domestic and overseas business activities in strict accordance with
local laws and regulations, and with respect for local business customs.

Fair Transactions
All business transactions will occur based on the principles of fair competition
with equal opportunities for all entities to participate. We build trust and
cooperative relationships through fair and transparent transactions. Such
relationships are built with a long-term perspective for mutual growth.
1. Equal Opportunity
We offer equal opportunities to all qualified companies seeking to become our
business partners. All applicants are registered and selected in a rational manner
following a fair and objective evaluation process.
2. Fair Transaction Procedures
All business transactions are conducted under equitable circumstances. The terms
and procedures of the transaction are to be sufficiently discussed between parties
involved. The use of prominence in position to execute an unjust transaction is
forbidden. Information required for transaction is exchanged through appropriate
procedures in timely manner. Transaction results are evaluated on a regular basis
where complementary measures are mutually taken.
3. Support and Aid for Business Partners
We support the long-term growth of our dealers and vendors by enhancing their
competitiveness through technological and managerial assistance. We share the
profits derived from business innovations. We pursue cooperation with our dealers
and vendors in a mutual effort to promote a healthy trading environment and
maintain a fair trading system.

Basic Ethics for Employees
Based on honesty and fairness, LG employees establish a correct values and fulfill
the duties through continuous self-development and fairness in performance.
1. Basic Ethics
LG employees take pride in their company and always maintain an honest and fair
attitude. LG employees keep a high standard of morality and continuously strive to
maintain their personal dignity and company's honor.
2. Completion of Duty
LG employees faithfully accomplish their duties in compliance to the visions and
policies of the company. Assigned duties are carried out in the best possible and
fairest manner while observing relevant laws and regulations. LG employees
protect and preserve company property and do not divulge confidential information
gained during employment. LG employees exert themselves in enhancing work
efficiency through open communication and cooperation with colleagues and
related departments.
3. Self Development
LG employees formulate their respective ideal image of an exemplary employee
and constantly strive to conform to the image through continuous self
development.
4. Fairness in Performance
LG employees carry out their duties based on honesty and fairness, seeking to
foster a sound business culture. While performing their duties, LG employees do
not accept any form of financial benefit from interested parties that may obstruct
fair judgment. LG employees do not participate in any immoral and unethical
behaviors as prescribed by social norms in performing their duties to the company
or in their personal lives.
5. Avoidance of Conflict with Company Interests
LG employees avoid any individual behaviors or relationships that are in conflict
with company interests. LG employees do not use company property to pursue
their personal interests without prior permission.

Corporate Responsibilities to Employees
LG endeavors to respect the human dignity of its employees and provides fair
treatment based on their abilities and performances. LG also strives to foster
creativity among its employees.
1. Respect for Human Dignity
LG treats each employee with trust and affection and places a high value on
individual human dignity. LG takes great efforts to help employees attain pride and
personal fulfillment by instilling a sense of ownership in their jobs.
LG establishes fair regulations and educational guidelines necessary for employees
to perform their duties.
2. Fair Treatment
LG offers equal opportunities to all its employees based on their abilities and
talents. LG applies fair measures to evaluate abilities and performances of its
employees and rewards them accordingly.
3. Promoting Creativity
LG makes utmost efforts to promote a working environment conducive to creative
thinking and autonomous behaviors. LG develops and manages its human
resources on a long-term basis and gives active support to cultivating employees’
abilities. LG creates a mature organizational culture that highlights mutual trust,
understanding and respect for personal lifestyle.

Responsibilities to Society and the Country
LG contributes to national welfare and social development through rational
business expansion providing stable growth as a corporation and protecting
stockholder’s interests.
1. Rational Business Development
LG conducts its business with respect to the social values at home and abroad. LG
promotes its business expansions based on stable corporate growth.
2. Protection of Stockholder Interest
LG protects its stockholders' interests by earning healthy profits through effective
management.
3. Contribution to Social Development
LG contributes to national and social development through job creation, tax
payment, and promotion of cultural and welfare programs.
4. Environmental Conservation
LG strives to prevent environmental pollution and employs all measures necessary.

COMPETITORS
The company which compete to LG electronics which is also as a MNC level as
well as National As Regional level.
The name areas follow:-
MNC LEVEL
 SAMSUNG
 TCL
 HAIER
 PHILIPS
 PANASONIC
 SANSUI
 WHIRLPOOL
 AKAI
 HITACHI
NATIONAL LEVEL
 ONIDA
 VIDEOCON
 BPL
 VOLTAS
REGIONAL LEVEL
 BUSH
 SALORA
 WESTON
 BELTAK
 OSCAR

SWOT ANALYSIS
Strengths:-
 LG is a multinational company and a recognized brand around the world. It
has successful established not only in developed countries but also in
developing countries.
 LG products are reliable, easy to use, and have simple designs which satisfy
customers that's why LG have the advantage of having loyal customers.
 In LG Corporation the research and development has given greater
importance because to satisfy the customers and provide the customers what
they want the research and development id required.
 LG try to keep products innovative to attract the customers and to capture
more market share.
 LG is at its growing stage and its growing quickly. It is producing solid
products which rapidly satisfying the customers.
Weaknesses:-
The big weakness of LG is that it has very few competent employees mostly are
not skilled and also there is no training and development concern for employees.

Opportunities:-
 The electronic market is expanding rapidly which is a great opportunity for
LG to expand itself in new market and to capture more market share. It also
can expand its target market geographically and socially both by introducing
new products in existing market and existing products in new markets.
 Through the innovation in existing products it can attract more customers
because at present it is behind the market leadership so to become a leader it
has to make innovations to attract potential buyers and retain existing
customers.
Threats:-
 As the competitors of LG are more dominant in the market and continuously
improving their products so they can take away the existing customers of
LG, so it has to work very hard to retain and attract customers.
 The condition of economy all around the world is not good and it is affecting
the purchasing power and priorities of the customers, people are facing
difficulties in satisfying basic and needs so how they can spend on
electronics which is considered as luxury items. This situation can affect the
sales of the company.


DISCUSSION ON
TRAINING

 Awareness is the state or ability to perceive, to feel, or to be conscious of
events, objects, or sensorypatterns. In this level of consciousness,sense data
can be confirmed by an observer without necessarily
implying understanding. More broadly, it is the state or quality of being
aware of something.
 Awareness is not your thoughts or feelings or your mind. You would not
experience those without awareness. You can have awareness without
thoughts, feelings or mind but you can't have thoughts, feelings or mind
without awareness.
 Consumer awareness is the understanding and knowledge that a buyer
should have of his rights as a customer. The awareness is very important for
the buyer since it permits him to get the most from what he buys.
 Consumer awareness is making consumers aware of their rights to be safe, to
have choices, to have access to product information and to be heard when
they have something to say.

OBJECTIVES OF MY JOB:
 The paramount motive of this on job training is the application of all the
theoretical concepts learnt so far in courseware of PGDM.
 To acquire the corporate exposure and to learn the corporate culture
 To acquire the marketing knowledge.
 To develop my skill and familiar with organization

RESPONSIBILITES
In the during on training my responsibility are as follow.
 To interact the customer:- Main things of my project is to interact the
customer and find out those customer is aware are not about LG company.
 To find out the customer problem which is faced on the particular product?
 To increase company Goodwill :- The most important things of any survey
is to increase the company goodwill in the particular market.
 To promote the company product :- My responsibility is to promote the LG
company product to the different customers.
ROLES
During the project report my role are as follow.
 Collect the data for the customers.
 Find out the awareness of this particular brand.

DESCRIPTION OF LIVE EXPERIENCE:
Doing a project for about 6 week was a great achievement for me. Every day came
to me with a new learning and experience. I realized that gaining knowledge from
books regarding marketing and handling the critical situations in the field is
entirely different. One has to implement his on skills along with the book
knowledge as soon as he enters in the market. I had lot of good, bad and new
experience in the marketing training in LG Electronics.

ANALYSIS OF TASK

Statement of the problem
With regard to the increasing competition and the growth of companies in the electronics
industry, consumer awareness and his perception about the company are the main concerns for
the organization. In this view, to organization come to a conclusion and to take a right decision,
right time in right place. Therefore the study is conducted to analyze the consumer awareness of
the LG Electronics.
OBJECTIVE
 To find out the awareness level of LG product’s among the customer.
 To find the key factor for denial & acceptance of LG products.
 To find the which product of LG is most popular among consumer.
 To find the satisfaction level of person who are already using LG brand.
SCOPE
This study was conduct to find out the awareness of LG products and consumer
behavior for particular brand. So we can say that the scope of this study is very
wide.

Methdology
Research methodology is considered as the nerve of the project. Without a proper
well-organized research plan, it is impossible to complete the project and reach to
any conclusion. The project was based on the survey plan. The main objective of
survey was to collect appropriate data, which work as a base for drawing
conclusion and getting result.
Therefore, research methodology is the way to systematically solve the research
problem. Research methodology not only talks of the methods but also logic
behind the methods used in the context of a research study and it explains why a
particular method has been used in the preference of the other methods
Research design:
Research design is important primarily because of the increased complexity in the
market as well as marketing approaches available to the researchers. In fact, it is
the key to the evolution of successful marketing strategies and programmers. It is
an important tool to study buyer’s behavior, consumption pattern, brand loyalty,
and focus market changes. A research design specifies the methods and procedures
for conducting a particular study. According to Kerlinger, “Research Design is a
plan, conceptual structure, and strategy of investigation conceived as to obtain
answers to research questions and to control variance.

Types of research are:
 Descriptive Research
The type of research adopted for study is descriptive. Descriptive studies are
undertaken in many circumstances when the researches is interested to know the
characteristic of certain group such as age, sex, education level, occupation or
income. A descriptive study may be necessary in cases when a researcher is
interested in knowing the proportion of people in a given population who have in
particular manner, making projections of a certain thing, or determining the
relationship between two or more variables. The objective of such study is to
answer the “who, what, when, where and how” of the subject under investigation.
There is a general feeling that descriptive studies are factual and very simple. This
is not necessarily true. Descriptive study can be complex, demanding a high degree
of scientific skill on part of the researcher.
Descriptive studies are well structured. An exploratory study needs to be flexible in
its approach, but a descriptive study in contrast tends to be rigid and its approach
cannot be changed every now and then. It is therefore necessary, the researcher
give sufficient thought to framing research.

Data collection methods:
After the research problem, we have to identify and select which type of data is to
research. At this stage; we have to organize a field survey to collect the data. One
of the important tools for conducting market research is the availability of
necessary and useful data.
Primary data: we collect primary data are as follow.
1. Questionnaires
2. Survey
Secondary Data :- We collect secondary data are as follow.
1. Company’s profile
2. journals
3. Internet
4. Magazines
5. Newspaper

SAMPLING
“Stratified random sampling” was done for each of the specified category
mentioned above, so as to ensure that the sampling represent all section of users as
well as non-users.
SAMPLE SIZE
Sample size was taken to be 500.
SAMPLE TYPE
There are 5 types of sample which are as follow.
 Quota Sample
 Stratified Sample
 Purposive Sample
 Random Sample
 Convenience Sample
In this project I am choosing Random sample. Because it is the easiest way to
done my project report.

LIMITATION OF THE STUDY
Lack of interest and enthusiastic response may have allowed biases in the report.
Test of sampling error could not be done due to the absence of data regarding the
total population size. Correctness of this report is restricted and limited by the
degree of authenticity of data collected and sincerity and honesty of respondent.

DATA ANALYSIS
1- Are you know about LG company.
Inference
Acc. to survey am find out that all personis know about LG company.
500
0
yes No
Yes 500
No 0

2- How do you know about LG company.
Advertise Friends Relative Other
300 50 100 50
Inference
Acc. to survey this result is come out that Max. personis know about LG company
through Advertise but Company needs to more advertise for our product.
0
50
100
150
200
250
300
350
Advertise Friends Relative Other
Series 1

3-Are you used LG product.
Yes No
400 100
Inference
Acc. to survey this result is come out that Max. people is used LG product.
400
100
Yes
No

4-Which type of product you used.
Inference
Acc. to survey LG TV demand is very good.
Company want to more advertise about his product which demand is less.
200
100
80
20
0
50
100
150
200
250
T.V. Freeze Wasing
Machine
Other
Series 1
T.V. FREEZE WASHING MACHINE OTHER
250 150 80 20

5-Are you satisfied for that product.
YES NO
480 20
Inference
Acc. to survey 95% people satisfyfor the LG product.
380
20
Yes
No

6-Are you satisfied for LG Services.
YES NO
360 40
Inference
Acc. to survey 90% of people satisfy for LG services.
360
40
Yes
No

7- From where you purchases LG product.
EXCLUSIVE SHOW ROOM NORMAL SHOP OTHER
250 150 000
Inference
Acc. to survey this result is come out LG exclusive showroom sale is very good
compare than Normal Electronics Showroom.
250
150
0
Sales
Exclusive Showroom
Normal Shop
Other

7. How frequently you change your consumer durables?
1-3 YEAR 3-5 YEAR 5-10 YEAR MORE THAN 10
YEAR
60 150 210 80
Inference
Acc. to survey result is come out that its very good opportunity to the LG company
for sale our product.
60
150
210
80
Sales
1-3 Year
3-5 Year
5-10 Year
More than 10 year

Consumersurvey Findings
1. The most important things is it is very difficult to meet the individual person
for a survey.
2. By calculating the display share we found that 100% of the consumer know
about LG company.
3. According to the survey 70% Customer are satisfied in services.
4. 60% people purchases the LG product in exclusive showroom.
5. And they also say that is product is also good compare than other company
product.
6. Some of the customer are brand loyal for LG company.
7. They want to buy from the showrooms or from co. showrooms. For them
service is important .Beside convenience and other factors service is key
factor.
8. Also majority of customers do not want any financing scheme for
purchasing the durables.
9. The product is well aware and it is on top of mind of customer.
10.Customers are also now very choosy in buying the product and it is
important for the company to make loyal customer of their brand.

RECOMMENDATIONS AND SUGGESTIONS
1. LG should More improve it’s after sale service.
2. More detailed customaries service is to be provided.
3. LG Should also provide some extra benefit to his customer.
4. LG Should also increase his customer.
5. LG should also increase it’s product demand.

LIMITATIONS
Every study has certain limitations. In my study, also there were certain
limitations, which I could not able to solve.
1. The research was conducted in a small area.
2. Time factor was also important for me. I had only 60 days to complete my
research, for which a full-fledged report was insufficient for me.
3. The customer filled the questionnaire mostly in careless manner, so it was
difficult to make them hold for time.
4. I had only found the upper-middle class family to fill up the questionnaire,
but generally, an average middle class family was required for the study.
5. The sample size is also very small which represent my research on
consumer behavior

BIBLIOGRAPHY
 www.lgindia.com
 www.google.com
 www.wikipedia.com
 Business world
 Business today
 LG magazine
 Economics times News paper
 Times of India

Annexure
Name :- _________________________________________
Occupation:-_________________________________________
Age:- _________________________________________
Contact no:-__________________________________________
1- Are you know about LG company.
Yes
No
2- How do you know about LG company.
Advertise
Friends
Relative
Other
3-Are you used LG product.

Yes
NO
4-Which type of product you used.
Television
Freeze
Washing machine
Others
5-Are you satisfied for that product.
Yes
No
6-Are you satisfied for LG Services.
Yes
No
7- From where you purchases LG product.
Exclusive showroom
Normal Shop
Other
8. How frequently you change your consumer durables?
1-3 years

3-5 years
5-10 years
More than 10 years
9- Any improvement you want?
_____________________________________________________________________________________
_____________________________________________________________________________________
_____________________________________________________________________________________
10-Are you Given Any Suggestion.
_____________________________________________________________________________________
_____________________________________________________________________________________
_____________________________________________________________________________________

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